📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

GLOBAL MARKETS-Data hauls dollar off 2-month low, stocks push higher

Published 16/10/2015, 01:16 am
© Reuters.  GLOBAL MARKETS-Data hauls dollar off 2-month low, stocks push higher
EUR/USD
-
USD/JPY
-
NDX
-
XAU/USD
-
US500
-
DJI
-
AXJO
-
JP225
-
GS
-
SOGN
-
WMT
-
HG
-
CL
-
US10YT=X
-
0593xq
-
KS11
-
SSEC
-
FTEU3
-
MIAPJ0000PUS
-
DXY
-

* Europe tracks Asian stock gains as Fed hike bets wither

* MSCI Asia-Pacific index hits 2-month high

* Dollar struggles at multi-week lows versus peers

* U.S. crude dips amid lingering global glut concerns

By Marc Jones

LONDON, Oct 15 (Reuters) - Reassuring U.S. core inflation and jobless claims figures lifted the dollar off a two-month low on Thursday, while a two-month high for Asian indexes saw world shares bounce back from two days of losses.

A steady pick-up in underlying U.S. consumer price pressures and the lowest new unemployment claims in 42 years helped allay fears of a new bout of disinflation and settled some nerves after Goldman Sachs (N:GS) GS.N became to latest major Wall Street name to report a plunge in profits. ID:nL3N12F4C4

Dire data and company results on Wednesday that included $22 billion being wiped off the value of the world's largest retailer Wal-Mart (N:WMT), had seen the dollar drop overnight. .DXY

But the CPI numbers cemented a turnaround and it was pulling clear of the $1.15 per euro EUR= and the 118.10 yen JPY= levels it had tested as Wall Street's main markets also got off to a 0.3 - 0.6 percent positive start. .N .SPX .DJI .NDX

"The dollar having been on the back foot, is now less on the back foot" said Kit Juckes, at Societe Generale (PA:SOGN) in London

"But the markets are extremely fickle. Between the comments from Nowotny and a small tick up in U.S. underlying CPI we have managed to shift (the dollar direction) around. But there is only so much happiness I can get from data is still soft."

The dollar's slide was initially halted by European Central Bank policymaker Ewald Nowotny who said it was "quite obvious that additional sets of instruments are necessary" if the ECB wants to get euro zone inflation heading back towards 2 percent. ID:nF9N10U01H

The scent of stimulus helped European shares snap a three-day slide. The pan-European FTSEurofirst 300 .FTEU3 rose 1.2 percent after Asian bourses, which are also eyeing stimulus from China and Japan, had hit their highest since mid-August.

A new Reuters poll showed China is expected to keep cutting interest rates and bank reserve requirements against a backdrop of slowing growth which is now expected to be 6.5 percent next year. ID:nL3N12E44Y

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS ended up 2 percent as Shanghai shares .SSEC advanced 2.3 percent, Australian shares .AXJO nudged up 0.6 percent and South Korea's Kospi .KS11 climbed 1.1 percent.

Japan's Nikkei .N225 gained 1.15 percent, as the second successive fall in manufacturers' sentiment kept pressure on its policymakers to do more. ID:nT9N11A01F

"There seem to be considerable expectations of further economic stimulus, which could mitigate some of the deflationary pressures," said Gerry Alfonso, analyst at Shenwan Hongyuan Securities.

EMERGING RELIEF

The U.S. data saw a minor unwinding of Wednesday's debt market rally. U.S. 10-year notes saw their yields climb back to 2 percent and Germany Bund yields nudged higher too though the strength of the move was questionable. US10YT=RR GVD/EUR

The chance of a Fed rate hike any time soon have all but evaporated following a month-long run of disappointing U.S. and also Chinese and European data.

European Central Bank Vice President Vitor Constancio said a rate hike by the Fed could have greater global repercussions than in the past because the economy has changed and central banks were "learning in real time" having got little experience of moving away from zero interest rates. urn:newsml:reuters.com:*:nF9N110007

Among commodities, oil struggled amid lingering concerns of a global supply glut and as the dollar stabilised O/R . Industrial metals got a fresh lift with copper CMCU3 near a 4-week high and gold XAU= reaching a 3-1/2 month peak.

Emerging Asian currencies also made the most of the earlier dollar weakness. The Indonesian rupiah IDR= hit its strongest in more than four months, South Korea's won KRW=KFTC touched a three-month peak and Malaysia's ringgit MYR=MY jumped more than 1 percent.

"We are seeing continuous unwinding of bearish bets on emerging currencies generally, as views of 'no U.S. hike this year' are growing," said Seungji Jeon, Samsung (KS:005930) Futures' FX analyst in Seoul.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets in 2015

http://link.reuters.com/dub25t Currencies vs dollar

http://link.reuters.com/tak27s Commodities performance

http://link.reuters.com/rac73w

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Janet Lawrence)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.